News
EnBW starts reporting CO 2 trades to EEX
EnBW Trading today became the eighth company to report its carbon emission trades to the European Energy Exchange (EEX) for the exchange’s CO 2 price index. EnBW Trading is a subsidiary of Karlsruhe-based German utility EnBW Energie Baden-Württembergin.
Nomura continues equity derivatives build-up
Nomura, the Japanese securities firm, has continued its drive to create a strong European equity derivatives department, by unveiling a number of new hires.
Credit correlation model debuts on Bloomberg
Morgan Stanley’s credit correlation model has been made available on Bloomberg today. The model can be used to price basket and single-tranche credit derivatives.
GE Commercial Finance Energy Financial Services to arrange and underwrite debt
Energy companies now have another option when it comes to choosing who will help finance a project or arrange a debt placement for them. GE Commercial Finance Energy Financial Services is to broaden its role as an equity and debt investor to include…
Fitch’s corporate derivatives usestudy finds lack of transparency
Fitch Ratings’ recent study of hedgeaccounting and disclosure amongcorporates has revealed a somewhatsurprising lack of public disclosure of derivativesuse. The study focused mainlyon US corporates that have been reportingunder FAS 133 – the accounting…
Software glitch halts CBOE trading
The Chicago Board Options Exchange (CBOE) suffered an interruption in its order routing and dissemination reporting last Wednesday.
Risk management is not just about quantitative models, says Schmidt Bies
Effective risk management is more than technical skills in building internal models, and needs qualitative factors of experience and sound judgement, according to governor Susan Schmidt Bies of the US Federal Reserve.
Barx proves catalyst for electronic swaps, says Icap’s Spencer
The move by UK investment bank Barclays Capital to offer live interest rate swaps prices via Bloomberg terminals is the catalyst that will drive the electronic trading of interest rate swaps, according to Icap chief executive Michael Spencer.
China Aviation gets six week breather
China Aviation Oil (CAOSCO) has been granted a six week extension by the High Court of Singapore to its deadline to submit its scheme of arrangement restructuring plan, due today. The new deadline is January 21, 2005.
European Commission blocks acquisition of Gás de Portugal
The European Commission has blocked the joint acquisition of Gás de Portugal (GDP), the country’s incumbent gas company, by Energias de Portugal (EDP) and Italian energy company Eni, because it would impede competition.
Oil price falls despite Opec cut
Oil prices fell Friday afternoon despite a decision by the Organisation of Petroleum Exporting Countries (Opec) to rein in current oversupply, effectively taking 1 million barrels a day off the market.
Agencies warn banks of risks in bank-owned life insurance
US financial regulators (the Agencies) have released a joint statement warning financial institutions that the purchase and risk management of bank-owned life insurance (BOLI) must be consistent with safe and sound banking practices.
Satya Capital sues China Aviation Oil
Indonesian firm Satya Capital Limited is suing China Aviation Oil (Singapore) Corp and it parent company China Aviation Oil Holding Company for over $28 million for an alleged breach of a share purchase agreement, CAO (Singapore) Corp said late Wednesday.
Bankrupt Mirant seeks more time to file restructuring plan
Bankrupt US energy marketer Mirant has sought a further 90 days in which to file its plan of reorganisation for emerging from Chapter 11 protection from creditors. It filed the request with the US Bankruptcy Court on Monday, and this would be the third…
China Aviation Oil ceases oil derivatives trading
China Aviation Oil (Singapore) Corp has ceased all oil derivative trading activities after announcing a $550 million trading loss and seeking court protection from creditors last week, the company said late Wednesday.
DrKW appoints new head of capital markets prop trading
Dresdner Kleinwort Wasserstein (DrKW), the investment banking division of Dresdner Bank, has appointed Richard Huston to the new position of global head of capital markets risk trading.
OCC urges banks to match risk appetite with internal control capabilities
The Office of the Comptroller of the Currency (OCC), the primary supervisor of US national banks, has urged banks to match risk appetites with internal control capabilities.
We need a common definition of ‘validation of internal models’ across countries, says OCC
The lack of a common definition of the ‘validation process’ of the internal credit risk measurement models across countries could cause problems in the cross-border risk management under the new Basel Accord, Basel II, according to New York-based Mark…
BIS triennial survey shows derivatives market up 120%
The latest instalment of the triennial over-the-counter derivatives survey from the Bank for International Settlements (BIS) has shown market growth of 120% in traded derivatives for the three years to June 2004.
CMS Energy to sell $200m of convertible senior notes
CMS Energy intends to offer for sale $200 million of convertible senior notes due on December 1, 2024, but would not reveal the rate of interest they will pay.
China Aviation Oil chief arrested
Chen Jiulin, the suspended chief executive of China Aviation Oil, has been arrested on his return to Singapore early Wednesday as investigations begin into the company’s huge trading losses.
Duke to settle California power crisis allegations
US power company Duke Energy and some of its subsidiaries will pay $207.5 million to settle allegations that it acted improperly during the California power crisis in 2000/2001. The US Federal Energy Regulatory Commission (Ferc) approved the settlement…
BarCap launches commodity-linked credit product
Fixed-income investors can now make use of a credit instrument that provides access to commodities as an asset class, says Barclays Capital. The investment bank has launched Apollo, a collateralised commodity obligation (CCO), which uses derivatives…
Mirant settles price-reporting charges
Atlanta-based energy company Mirant has settled charges with the US Commodity Futures Trading Commission (CFTC) of false reporting of natural gas prices.